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Affiliated Computer Services Inc. (ACS) provides information technology services as well as business process outsourcing solutions to businesses, government agencies, and non-profit organizations. ACS is based in Dallas, Texas and the current CEO is Lynn Blodgett. ACS is ranked at number 341 on the 2010 Fortune 500 list. Founded in 1988, by Darwin Deason, ACS now operates in nearly 100 countries, generating over $6 billion annually. As of September 2009, ACS employs approximately 74,000 people.
On September 28, 2009, Xerox Corporation announced plans to acquire ACS in a $6.4 billion transaction. The deal closed on February 8, 2010.

Affiliated Computer Services, Inc. (ACS) was founded by Darwin Deason in 1988. Initially created as a data services provider to the financial services industry, Deason led ACS’ expansion into the communications, education, financial services, government, healthcare, insurance, manufacturing, retail, and travel and transportation industries.
ACS expanded beyond banking BPO services when it signed a 10-year data processing outsourcing contract with Southland Corp. (7-Eleven). In 1995 ACS became a public company and divested bank data processing. By FY1996 ACS became the fourth largest commercial outsourcer in the U.S. Currently, ACS is best known for its Transportation Solutions Group (TSG), which supports transportation services including electronic toll collection, management of cities’ parking systems, and photo traffic enforcement.
In 2009, ACS ranked #401 on the FORTUNE 500 list and employs about 74,000 people around the world who serve thousands of commercial and government clients.
In February 2010, Urban Outfitters replaced ACS on the Standard & Poor 500 Index.

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The combination of Affiliated Computer Services (ACS) and Genix will create the nation's fourth largest outsourcer of data processing services, with annual revenues in excess of $500 million. Genix's revenues for the year ended Dec. 31, 1995 were $105.2 million. The all cash transaction is valued at approximately $135 million. Funds for the transaction are being provided by a group of banks led by Wells Fargo Bank (Texas), N.A. as arranger and Bank One-Texas, N.A. as co-agent. The acquisition, which is subject to anti-trust regulatory approval, is expected to close later this month.

The combined entities will provide a broad range of capabilities, including mainframe, midrange, and client/server data center operations, network and desktop computing, transaction processing, imaging systems and professional services. With major data centers in Pittsburgh, Charlotte, Detroit, Dallas, Salt Lake City and Santa Clara, ACS will have a strong presence in every region of the country. Moreover, Genix has a concentration of clients in the manufacturing, insurance and utility industries, complementing ACS' strengths in the healthcare, financial services, transportation and telecommunications segments.

Darwin Deason, ACS' chairman and chief executive officer, said, "This acquisition is a unique opportunity to significantly expand our commercial outsourcing business. We are thrilled about the potential of combining with Genix. Genix is a leader in the outsourcing industry and has a prestigious customer base. We're now ideally positioned to successfully compete for larger outsourcing contracts, and to take further advantage of the exploding market for commercial outsourcing."

Alfred R. Glancy III, MCN chairman, president and chief executive officer, said, "We are pleased to have entered into this transaction with ACS. Over the years, Genix has been a successful computer services outsourcing business. MCN and its shareholders have benefited from Genix's growth and profitability. We believe the sale of Genix at this stage of its evolution further enhances shareholder value and sharpens our focus of pursuing investments in energy-related products." MCN will be one of ACS' largest clients.

Jeff Rich, ACS' president and chief operating officer, added, "This acquisition is an excellent business fit for ACS. In 1995, ACS embarked
on a strategy to become a top tier commercial outsourcer. During the past year, ACS has made several strategic acquisitions to expand its technological capabilities. The acquisition of Genix fits with our strategy to expand our commercial outsourcing business and to become a billion dollar company by the end of the century. Genix meets all of our acquisition criteria - a successful, profitable company - high degree of recurring revenue - strong management - highly satisfied clients - and most importantly, a perfect cultural fit. ACS and Genix are poised to deliver expanded technological capabilities to our clients and increase our shareholder value."

“The largest challenges we face are in efficient management to achieve the best possible control of the cost to deliver services,” said Roy Singh, senior manager of storage management and architecture for the IT outsourcing business of ACS. “So, we look to standardize as much as possible and create a common infrastructure in our data centers. As the key connectivity solution between servers and storage, Emulex adapters and management tools have contributed a 5-10 percent gain
in productivity for ACS.” With more than $1 billion in revenues derived from its IT outsourcing business, ACS carefully considers each component of its data center architecture. As it accelerates its global evolution to virtualized environments and bladed servers, the company has made Emulex connectivity solutions one of the preferred products for Fibre Channel storage area network (SAN) connectivity.
 
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